Most investors and others who follow the gold market are aware that gold peaked in January 1980 at $850 oz. Gold is currently priced at $1772 oz., somewhat lower than its peak in August 2020 at $2060 oz. In either case, the gold price has...
After the gold price reached a high of $850 oz. in 1980, its price began a long decline that lasted over twenty years. But the decline was not just characterized by its lower price, which eventually bottomed around $250 oz.
“Gold going nowhere” seems to be a reasonable description of recent price action in the metals markets.
An understanding of the relationship between the gold price and inflation requires historical observation and factual understanding. Below are three specific statements that are rooted in historical fact...
If you are betting on gold, you may be in for some tough sledding. Below is a 5-year chart of the yellow metal updated through Sep 3, 2021…
You wouldn’t know that by listening to current commentary about inflation. Casual observers, economists, investors and analysts seem to agree that “higher inflation is being generated by abnormally huge amounts of government spending”.
The rise and fall of gold stocks is a story of hurt and disappointment. That is because most of the time gold stocks are in decline.
Both gold and crude oil peaked at all-time highs in 1980. Those highs are still intact when the effects of inflation are accounted for. Below are the charts for both gold and crude oil…
Since the origin of the Federal Reserve in 1913 the US dollar has lost ninety-nine percent of its purchasing power. Not coincidentally, but in direct reflection of the dollar's loss in purchasing power, the price of gold has multiplied one...
The actions by the Federal Reserve over the past year have led many to assume that much higher inflation is a foregone conclusion. This leads to a further expectation that a much higher gold price is imminent.